PUBLISHER: Acute Market Reports | PRODUCT CODE: 1785135
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1785135
The global electricity and steam generation waste heat recovery systems market is projected to grow at a CAGR of 8.2% from 2025 to 2033, driven by rising industrial energy demands, escalating fuel costs, and increasing emphasis on decarbonization. These systems capture residual heat from industrial operations and repurpose it for electricity or steam generation, significantly improving energy efficiency. Stringent environmental regulations, energy security concerns, and a growing shift toward circular energy practices across manufacturing, power generation, and refining sectors are contributing to the accelerated adoption of waste heat recovery systems (WHRS). Government incentives and technological advancements are further stimulating investment across both developed and emerging economies.
Market Drivers
Global Push for Industrial Energy Efficiency and CO2 Reduction
Governments and industries are prioritizing technologies that reduce energy consumption and carbon emissions. Waste heat recovery systems help lower fuel usage and CO2 emissions by utilizing surplus thermal energy from exhaust gases and high-temperature processes. In sectors such as cement, glass, steel, and chemicals, WHRS installations can enhance overall thermal efficiency by 10%-30%, significantly reducing operational costs. Favorable policy frameworks such as the EU Emissions Trading Scheme, U.S. DOE's Industrial Assessment Centers, and India's PAT (Perform, Achieve and Trade) scheme are catalyzing adoption across energy-intensive sectors.
Advancements in Cycle Efficiency and Modular Design
The growing use of Organic Rankine Cycle (ORC) and Kalina Cycle technologies is enabling effective recovery from low- to medium-temperature heat sources, widening the scope of application in decentralized and smaller-scale facilities. Compact and modular WHRS designs offer improved scalability, faster installation, and reduced capital expenditure, supporting deployment in both retrofit and greenfield projects. Integration with cogeneration, district heating, and hybrid renewable systems is enhancing ROI and system resilience.
Market Restraint
High Upfront Costs and Complex System Integration
Despite their long-term benefits, waste heat recovery systems require significant initial capital investment for feasibility studies, customization, installation, and integration with existing infrastructure. The economic viability of WHRS is highly dependent on heat source temperature, system design complexity, and energy pricing structures. In smaller facilities or developing regions, budgetary constraints, lack of technical expertise, and delayed ROI often hinder adoption. Maintenance of high-temperature components and ensuring corrosion resistance in aggressive environments also pose operational challenges.
Market Segmentation by Type
The market is segmented into Steam Rankine Cycle, Organic Rankine Cycle (ORC), and Kalina Cycle. In 2024, the Steam Rankine Cycle held the largest revenue share due to its maturity, high thermal efficiency, and compatibility with high-temperature industrial processes. The Organic Rankine Cycle is expected to grow at the fastest pace from 2025 to 2033, driven by its applicability to low- and medium-temperature heat recovery, especially in geothermal, biomass, and marine waste heat utilization. The Kalina Cycle, known for its enhanced thermodynamic performance in variable-temperature sources, is gaining traction in niche applications such as petrochemical and gas turbine recovery projects.
Market Segmentation by Temperature
By operating temperature, the market is segmented into <230 °C, 230 °C-650 °C, and >650 °C. In 2024, the 230 °C-650 °C segment dominated global revenue, with wide applicability across steel, cement, and refining industries. This range allows optimum utilization of steam generation cycles and supports combined heat and power (CHP) applications. The <230 °C segment is expected to witness the fastest growth due to rising deployment of ORC-based systems in wastewater treatment, marine, and food processing sectors. The >650 °C segment serves niche high-efficiency projects, including power boilers and high-performance gas turbines.
Geographic Trends
In 2024, Europe led the global market for WHRS in electricity and steam generation, supported by stringent carbon regulations, industrial sustainability initiatives, and proactive adoption of energy-efficient technologies. North America followed, with investments in waste heat-to-power (WHP) initiatives across oil & gas and heavy industries. Asia Pacific is projected to witness the highest CAGR between 2025 and 2033, driven by rapid industrialization, government incentives, and strong manufacturing presence in China, India, and Southeast Asia. Latin America and the Middle East & Africa are emerging markets, where rising energy costs and growing environmental awareness are encouraging adoption of heat recovery technologies in refineries and cement plants.
Competitive Trends
The electricity and steam generation WHRS market is highly competitive, comprising global power equipment leaders and specialized engineering firms. General Electric, Siemens Energy, Mitsubishi Heavy Industries, and IHI Corporation dominate large-scale system deployments, offering turnkey solutions with high reliability and customization. Thermax Limited, Forbes Marshall, and Bosch Industriekessel GmbH provide modular and region-specific offerings tailored to industrial applications in Asia and Europe. Exergy International SRL and Ormat lead innovation in ORC technologies for geothermal and low-grade heat sources. Companies like Climeon and AURA are focusing on compact systems for marine and remote installations. Competitive strategies center around cycle innovation, temperature versatility, cost efficiency, and service support. Collaborations for hybrid renewable integration and digital twin-based monitoring are shaping the next generation of heat recovery systems.
Historical & Forecast Period
This study report represents an analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Electricity & Steam Generation Waste Heat Recovery Systems market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Electricity & Steam Generation Waste Heat Recovery Systems market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.